HATFIELD PHILIPS INTERNATIONAL TITAN EUROPE P.L.C. Investor Call. 2 October 2014

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1 HATFIELD PHILIPS INTERNATIONAL TITAN EUROPE P.L.C. Investor Call 2 October 2014 Hatfield Philips International 25 Canada Square 34 th Floor London E14 5LB

2 Disclaimer This report has been compiled by Hatfield Philips International Limited ("Hatfield Philips") in its capacity as Special Servicer of the loans which are discussed in this report. Hatfield Philips makes no representation as to the reliability of the information provided to it by third parties in order to compile this report. Information in this presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments. This presentation may contain forward looking statements. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Hatfield Philips s control. Neither the whole nor any part of this report may be reproduced in any published document, circular or statement, nor is it to be relied upon by any party, without the prior written permission of Hatfield Philips. Hatfield Philips disclaims any duty, responsibility or liability of any nature whatsoever to any party in respect of this report other than to its contractual partners. 1

3 TITAN EUROPE P.L.C. DEAL SUMMARY Asset Profile Balance ( millions) Whole Loan (Borrower No. Transfer Loan balance) A-Note B-Note(s) Properties Location Property Type Maturity Loan Status Date Workout Strategy Mangusta Portfolio Germany Various Jul-2012 In Special Jun-2008 Insolvency Tiden Portfolio Germany Mixed-Use/Office Jan-2013 In Special Jan-2013 Insolvency Total Value Valuation Loan ( million) Date Senior LTV Occupancy Mangusta Portfolio 8.9 Aug % Tiden Portfolio 42.4 Jun % 45.8 % 4.3 Years Total

4 MANGUSTA PORTFOLIO LOAN Loan Status Workout History Performance/Credit Events UPB at Origination EUR 158,865,538 UPB EUR 85,064,199 Initial Whole Loan LTV 86.0% Whole Loan LTV 950.4% Special Servicing Transfer Date 23 June 2008 Estimated Final Resolution Date Q2 IPD 2016 Asset Stats Lettable area Strategy 5,717 sqm No. of assets 7 Asset type Various, mainly restaurants Valuation/Date EUR 8,950,000* / 31 August 2009 Location NRI ERV Vacancy Germany * Only related to the remaining 7 assets of the portfolio Transferred to Special Servicing on 23 June Acceleration of the loan on 17 December 2009 due to several defaults. Opening of insolvency proceedings in May 2010 upon application of the lenders. Sale of the all properties on 25 August 2010; purchase price EUR 76,468,820. Follow up on legal proceedings regarding asset disposal. Collect EUR 152k from administrator from net surplus at Q3 IPD 14. Collect further EUR k from rental surplus within the next 2 quarters. Proceeds of EUR 67,241,819 from the sale of the Mangusta Wuppertal Properties, Mangusta Berlin Property, Mangusta Sigmaringen Property and the Mangusta NH Hotel Property were received in two tranches on 28 June 2011 and on 29 June Closing of the SPA in relation to the remaining 7 assets in Heidelberg & Sandhausen depends on the outcome of legal proceedings against the sponsor. Net proceeds of ca. EUR 9m to be received for the remaining 7 assets. Further proceeds from rental cash of ca. EUR k held by the administrator are expected to be paid until final recovery after deduction of cost, fees etc. The buyer of the portfolio agreed with the insolvency administrator and the Special Servicer a management hand-over of the remaining properties to the purchaser, effective 1 March As a result no further rents are collected by the administrator. Closing of the sale of the remaining properties did not take place because the borrower is not yet registered as owner in the land register. This is due to a corporate restructuring initiated by the sponsor some weeks prior to the opening of the insolvency proceedings. The insolvency administrator applied for the correction of the land register. This was denied by the land registry because the insolvency administrator failed to provide evidence in the required format of a public deed that the borrower is in fact the owner of the properties. The denial was finally confirmed by the court. Therefore, the insolvency administrator, supported by the Issuer (costs estimated max. EUR 25,000 for the Issuer), sued the sponsor claiming that the borrower has indeed title to the properties. The second instance confirmed the lenders right; however, the case is currently in the appeal period. Until decided the SPAs cannot be closed. The upcoming legal fees are covered by a retainer held by the Special Servicer legal counsel. 3

5 TIDEN PORTFOLIO LOAN Loan Status Workout History Performance/Credit Events UPB at Origination EUR 98,000,000 UPB EUR 84,810,395 Initial Whole Loan LTV 87.0% Whole Loan LTV 200.2% Special Servicing Transfer Date 23 January 2013 Estimated Final Resolution Date Q4 IPD 2015 Asset Stats Lettable area Strategy 55,095 sqm No. of assets 7 Asset type Mixed-Use / Office Valuation/Date EUR 42,370,000 / 30 June 2012 Location Germany NRI EUR 2,557,603 ERV (current) EUR 5,380,064 Vacancy 54.2% 4.3 years Transferred to Special Servicing on 23 January 2013 due to non-payment at maturity. Negotiations about a consensual sale failed and preliminary insolvency proceedings were opened on 23/24 April Realisation agreement was signed on 6 December 2013 after lengthy negotiations with the insolvency administrator. Following the filing for insolvency the borrower s inhouse asset manager stopped working. New asset manager Pamera was appointed in December A business plan envisaging the sale of the portfolio step by step while ensuring a positive cashflow at all times, was presented in January 2014 and agreed. A key element of the sales strategy is to sell off the vacant/low-income properties (Mainz 1, Mainz- Kastel, Essen) first and the cash-rich properties thereafter. In accordance with the business plan, the sale of the Mainz-Kastel asset (Peter-Sander-Str.) has been notarized and is now waiting to close. The sale of the Mainz 1 asset (Im Münchfeld) is imminent. For the asset in Essen several interesting bids have been received and one investor is currently undertaking DD. Until maturity all debt service payments have been made. Thereafter no debt service was paid until July 2014 IPD, when a payment of approx. EUR 380k could be made by the insolvency administrator. Further payments can be expected, if surplus cash is available. However, the major part of the income will further be trapped to ensure the possibility to give tenant incentives in relation to re-letting of the Bonn asset. The largest tenant (Bonn property) representing 49.1 % of the rental income of the portfolio moved out in June Re-letting is very challenging and granular. Several small leases have already been signed and two more promising leases (combined approx. 4,750 sqm) are currently being negotiated. The second largest tenant (Munich property) representing 28.6% of the rental income of the portfolio has a remaining term of approx. 7.5 years. The remaining assets - apart from Mainz 2, Hegelstr. asset - are either vacant or occupied by several small tenants. Continue to reduce vacancy in the Bonn property (and potentially also the Hamburg property) and sell off the assets in cooperation with the insolvency administrator. 4